'Most beautiful coffee factory globally' and the man who refused opportunity to earn millions of US dollars from Phu My Hung urban land

Forteen years ago, instead of spending VND5 billion ($196,810) to buy land, Phuc Sinh Group invested in ESG (environment, society, and governance) initiatives, and then lost everything, but the choice is still correct, said Phan Minh Thong, chairman of Phuc Sinh Group.

After the initial failure, the path of practicing ESG has brought Phuc Sinh to a series of brilliant successes, he added. Bich Ngoc reports.

“At that time, someone said I would be bankrupt in six months”

There were many things I did that people thought were impossible. In 2001, when I started up with only VND60 million ($2,361), a woman in the industry mocked me, saying that at most I would go bankrupt in six months.

At that time, when I migrated from Hai Phong city in the North to Saigon, I was confused about everything. Luckily, Saigon and Hai Phong are both coastal cities, so the cultures were close to each other. I worked for a state agency and then quit, opening my own company specializing in exporting pepper and then spices. That period was full of challenges.

Yet after only five years, Phuc Sinh ranked number one in pepper exports. How great was that! Great companies from all over the world - the Netherlands, Singapore, France, England, the United States etc - poured in here. They had big financial strength and had been in the market for decades. Yet in the end, a small company that was in an extremely difficult situation like Phuc Sinh could sneak through and succeed.

During that process, I never set a goal of being number one. We struggled every day to survive, until the name Phuc Sinh suddenly appeared to be number one and sat firmly on the "throne" for decades after. At that time, the turnover was only about $120-130 million a year, but now we have exported up to $320 million a year.

“If I spent $196,811 to buy land, I would have millions of dollars now”

Sleeping on the internet was the right choice for me. Back then, I was young and could work for over 20 hours a day without getting tired. Where’s the money? I believe it lies in persuasion. Customers trusted me, and suppliers were willing to extend credit instead of requiring full payment upfront.

I once met with a deputy general director of the largest bank in Vietnam to discuss my proposed projects. After that meeting, they granted Phuc Sinh a significant loan. Ten years ago, securing VND70 billion ($2.75 million) in unsecured loans was unimaginable.

We must believe in ourselves and the path we’ve chosen. Only with that belief can we persuade others. Sometimes, being overly smart doesn’t solve problems; true understanding comes from the heart. Ultimately, business is about relationships between people.

When I started my business, many thought the goal was to sell domestically or, if exporting, to supply representative offices of multinational corporations. They even considered it fortunate to be purchased by a foreign company.

I saw things differently. Although I hadn’t read “The world is flat” at the time, I believed in its message. I wanted to trade globally, so I packed my backpack and traveled everywhere. I realized Europe was the right place - the land of sustainable development. No matter where I opened a company or built a factory, I wanted to do business there for the long haul.

Returning to Vietnam, I wanted to immerse myself in the beauty and majesty of my country for decades. Whatever we do, we should not only think of ourselves but also take into account vast raw material growing regions. This mindset has allowed Phuc Sinh to develop sustainably and enjoy many rewards today.

Phuc Sinh not only brings foreign currency into the country, it also creates tens of thousands of jobs for employees, workers, and farmers while protecting rivers, streams, mountains, and forests. Even more gratifying is that our results far exceed those of businesses that do not practice ESG.

Sixteen years ago, a major European customer requested that we adopt ESG practices. By 2015, they wanted half of their products on the shelves to be certified for sustainable development.

Their request felt groundbreaking at the time. Just two years later, in 2010, we began implementing ESG initiatives with an investment of VND5 billion ($196,810), a substantial amount for a private company.

While other private firms often sought sponsorship or non-refundable aid for such programs, Phuc Sinh used its own funds. At one point, we hired experts at a cost of up to VND800 million ($31,480). Yet, just two years later, we faced setbacks.

People said that if I had invested that money in land in the Phu My Hung urban area instead, I could have made a million dollars after a few years and lived a leisurely life. But I didn’t want that. I’ve always believed that in those critical moments of decision-making, I made the right choices, even if they didn’t always lead to immediate success.

Failure in the first two years of implementing ESG was not a total loss. While we did lose money, the experiences and lessons learned became deeply ingrained in the culture of Phuc Sinh.

By persevering and understanding the reasons for our failure, we emerged stronger. Two years later, in 2014, we became the first company in Vietnam to receive the Rainforest Alliance (RFA) sustainable development certification from a prestigious American organization.

I love agriculture and have a deep passion for coffee. In 2008, while shopping at a supermarket, I came across a package of coffee filled with flavorings. That experience sparked the idea of building a processing plant so that my friends, partners and I could enjoy real coffee.

The road to Son La is quite challenging! From Saigon, you had to fly out and then take a car for seven to eight hours to get there. Many people in Hanoi did not even realize that Son La had coffee, yet here I was, coming from so far away.

Fortunately, the local government was amazing. Before I even fully understood them, they had already grasped the mission of Phuc Sinh. They mentioned that for many years, they had gone to Saigon looking for investors for Son La but had no success. They were thrilled to meet me.

At 6 a.m., while I was still waking up, they knocked on my door, eager to take me to see historical sites and coffee-growing areas. They discussed productivity and advantages, encouraging me to draft a memorandum of understanding for investment during my visit. The Party chief and Chairman of the province introduced me to available plots of land for building a factory.

Despite the challenges of coming from Saigon to establish a factory there, I didn’t see any barriers or hardships. I didn’t mind waking up at 4 or 5 a.m. to catch a car to the airport, fly to Hanoi, and then take a bus to Son La. Even when my friend, chief representative of a major coffee company in Germany, advised me against it, I chose to ignore his caution.